New law offers lifeline for people in serious debt

Individuals who face losing their homes because of debt could be offered a lifeline thanks to a new law unanimously supported by the government.

29.05.2012

Individuals who face losing their homes because of debt could be offered a lifeline thanks to a new law unanimously supported by the government.

Under the legislation, people in serious debt will not see their homes repossessed in order to pay off creditors provided they fulfil certain conditions.

The property cannot be seized if:

it serves as a home to children, their father and/or mother who is responsible for them

it serves as a home for a person suffering serious poverty

it houses a person who, because of their age or particular disability, may be placed in a situation of social distress by the loss of their home and that the repayment of loans for the purchase can be done as part of a plan of rehabilitation.

Another amendment will result in the creation of a consultative directory, centralising advice and information relating to the settlement of debts, a measure which complies with the law on the protection of personal data.

The changes are contained in a new law created to avoid legal uncertainty, which will be presented to the governing council and voted on before the summer break.